One of the products stocked by a Sam's Club store is Sams Cola, which is sold in cases. The demand level for Sams Cola is highly seasonal:

During the slow season, the demand rate is approxi- mately 650 cases a month, which is the same as a yearly demand rate of 650*12 = 7,800 cases.

During the busy season, the demand rate is approxi- mately 1,300 cases a month, or 15,600 cases a year.

The cost to place an order is $5, and the yearly holding cost for a case of Sams Cola is $12.

a. (**) According to the EOQ formula, how many cases of Sams Cola should be ordered at a time during the slow season? How many cases of Sams Cola should be ordered during the busy season?
b. (**)Suppose Sam's Club decides to use the same or- der quantity, Q = 150, throughout the year. Calculate total holding and ordering costs for the year. Do not consider safety stock in your calculations. (Annual de- mand can be calculated as an average of the slow and b. (*) usy rates given above.)